AGRICULTURAL WAGE REGULATION. Memorandum by the Minister of Labour & National Service and the Minister of Agriculture & Fisheries covering:

2. 7. In our opinion, the need is not acute because the main point made in the earlier discussion can be met in another we. The danger of counties raising wages in the expectation that prices would be increased correspondingly would largely disappear if it were made clear that any increase in County minimum wage rates beyond the national minimum fixed by the central Board would not be met by an increase in prices, but would have to be met by the industry itself. 8. We consequently suggest:- (i) That no amendment of agricultural wage-fixing machinery should be undertaken at present; but (ii) That the National Farmers' Union and the Agricultural Workers' Unions should be informed:(a) that because of the unlikelihood that agreement could be reached within the industry on alterations to the wage fixing machinery, the Government had decided not to amend, for the present, the existing law; (b) that the Government wished to make it clear, however, that in any discussions about returns to farmers in relation to costs of production, labour costs would be assessed by reference to the National minimum wage, fixed by the Agricultural Wages Board; and (c) that in consequence, if local wage increases are granted by Agricultural Wages Committees they will fall to be met out of the current returns of the industry.